PIRELLI & C SPA (PIRC.MI) Stock Fundamental Analysis
BIT:PIRC - Euronext Milan - IT0005278236 - Common Stock - Currency: EUR
Taking everything into account, PIRC scores 6 out of 10 in our fundamental rating. PIRC was compared to 27 industry peers in the Automobile Components industry. PIRC has an excellent profitability rating, but there are some minor concerns on its financial health. PIRC is not valued too expensively and it also shows a decent growth rate. PIRC also has an excellent dividend rating. With these ratings, PIRC could be worth investigating further for dividend investing!.
1. Profitability
1.1 Basic Checks
PIRC had positive earnings in the past year.
In the past year PIRC had a positive cash flow from operations.
Each year in the past 5 years PIRC has been profitable.
In the past 5 years PIRC always reported a positive cash flow from operatings.
1.2 Ratios
PIRC has a better Return On Assets (5.36%) than 92.59% of its industry peers.
PIRC's Return On Equity of 12.28% is amongst the best of the industry. PIRC outperforms 81.48% of its industry peers.
PIRC has a Return On Invested Capital of 10.66%. This is amongst the best in the industry. PIRC outperforms 92.59% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PIRC is in line with the industry average of 6.73%.
The last Return On Invested Capital (10.66%) for PIRC is above the 3 year average (6.34%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.36% | ||
| ROE | 12.28% | ||
| ROIC | 10.66% |
ROA(3y)3.32%
ROA(5y)2.47%
ROE(3y)8.23%
ROE(5y)6.31%
ROIC(3y)6.34%
ROIC(5y)5.02%
1.3 Margins
PIRC's Profit Margin of 6.99% is amongst the best of the industry. PIRC outperforms 92.59% of its industry peers.
In the last couple of years the Profit Margin of PIRC has declined.
With an excellent Operating Margin value of 13.48%, PIRC belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
PIRC's Operating Margin has been stable in the last couple of years.
PIRC has a better Gross Margin (64.22%) than 92.59% of its industry peers.
PIRC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.48% | ||
| PM (TTM) | 6.99% | ||
| GM | 64.22% |
OM growth 3Y6.63%
OM growth 5Y-1.41%
PM growth 3Y6.75%
PM growth 5Y-3.44%
GM growth 3Y15.15%
GM growth 5Y5.65%
2. Health
2.1 Basic Checks
PIRC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, PIRC has about the same amount of shares outstanding.
The number of shares outstanding for PIRC remains at a similar level compared to 5 years ago.
Compared to 1 year ago, PIRC has an improved debt to assets ratio.
2.2 Solvency
PIRC has an Altman-Z score of 2.15. This is not the best score and indicates that PIRC is in the grey zone with still only limited risk for bankruptcy at the moment.
PIRC has a Altman-Z score of 2.15. This is in the better half of the industry: PIRC outperforms 70.37% of its industry peers.
PIRC has a debt to FCF ratio of 4.23. This is a neutral value as PIRC would need 4.23 years to pay back of all of its debts.
PIRC's Debt to FCF ratio of 4.23 is amongst the best of the industry. PIRC outperforms 85.19% of its industry peers.
PIRC has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
PIRC's Debt to Equity ratio of 0.47 is fine compared to the rest of the industry. PIRC outperforms 70.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 4.23 | ||
| Altman-Z | 2.15 |
ROIC/WACC1.64
WACC6.49%
2.3 Liquidity
PIRC has a Current Ratio of 1.23. This is a normal value and indicates that PIRC is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.23, PIRC is in line with its industry, outperforming 51.85% of the companies in the same industry.
A Quick Ratio of 0.77 indicates that PIRC may have some problems paying its short term obligations.
PIRC's Quick ratio of 0.77 is on the low side compared to the rest of the industry. PIRC is outperformed by 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.02% over the past year.
Measured over the past 5 years, PIRC shows a small growth in Earnings Per Share. The EPS has been growing by 1.33% on average per year.
The Revenue has been growing slightly by 1.99% in the past year.
PIRC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.94% yearly.
EPS 1Y (TTM)7.02%
EPS 3Y9.65%
EPS 5Y1.33%
EPS Q2Q%25%
Revenue 1Y (TTM)1.99%
Revenue growth 3Y8.31%
Revenue growth 5Y4.94%
Sales Q2Q%3.72%
3.2 Future
PIRC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.36% yearly.
The Revenue is expected to grow by 2.11% on average over the next years.
EPS Next Y3.63%
EPS Next 2Y9.11%
EPS Next 3Y9.36%
EPS Next 5YN/A
Revenue Next Year2.35%
Revenue Next 2Y2.88%
Revenue Next 3Y3.13%
Revenue Next 5Y2.11%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
PIRC is valuated reasonably with a Price/Earnings ratio of 9.48.
Compared to the rest of the industry, the Price/Earnings ratio of PIRC indicates a somewhat cheap valuation: PIRC is cheaper than 66.67% of the companies listed in the same industry.
PIRC is valuated cheaply when we compare the Price/Earnings ratio to 27.48, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 8.37 indicates a reasonable valuation of PIRC.
The rest of the industry has a similar Price/Forward Earnings ratio as PIRC.
PIRC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.48 | ||
| Fwd PE | 8.37 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as PIRC.
PIRC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PIRC is cheaper than 62.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.39 | ||
| EV/EBITDA | 4.31 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates PIRC does not grow enough to justify the current Price/Earnings ratio.
PIRC has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.61
PEG (5Y)7.13
EPS Next 2Y9.11%
EPS Next 3Y9.36%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.25%, PIRC is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.04, PIRC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, PIRC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.25% |
5.2 History
The dividend of PIRC has a limited annual growth rate of 2.92%.
Dividend Growth(5Y)2.92%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
28.30% of the earnings are spent on dividend by PIRC. This is a low number and sustainable payout ratio.
PIRC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP28.3%
EPS Next 2Y9.11%
EPS Next 3Y9.36%
BIT:PIRC (7/17/2025, 7:00:00 PM)
5.782
+0.02 (+0.31%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners13.77%
Inst Owner ChangeN/A
Ins Owners27.72%
Ins Owner ChangeN/A
Market Cap5.78B
Analysts83
Price Target6.87 (18.82%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.25% |
Yearly Dividend0.2
Dividend Growth(5Y)2.92%
DP28.3%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.8%
Min EPS beat(2)-1.96%
Max EPS beat(2)0.36%
EPS beat(4)3
Avg EPS beat(4)11.46%
Min EPS beat(4)-1.96%
Max EPS beat(4)39.27%
EPS beat(8)7
Avg EPS beat(8)19.38%
EPS beat(12)11
Avg EPS beat(12)25.48%
EPS beat(16)14
Avg EPS beat(16)30.41%
Revenue beat(2)1
Avg Revenue beat(2)0.36%
Min Revenue beat(2)-1.59%
Max Revenue beat(2)2.31%
Revenue beat(4)1
Avg Revenue beat(4)-0.43%
Min Revenue beat(4)-1.59%
Max Revenue beat(4)2.31%
Revenue beat(8)1
Avg Revenue beat(8)-0.8%
Revenue beat(12)5
Avg Revenue beat(12)17.85%
Revenue beat(16)9
Avg Revenue beat(16)27.3%
PT rev (1m)0%
PT rev (3m)1.81%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.71%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.73%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.92%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.48 | ||
| Fwd PE | 8.37 | ||
| P/S | 0.56 | ||
| P/FCF | 6.39 | ||
| P/OCF | 4.39 | ||
| P/B | 0.99 | ||
| P/tB | 8.15 | ||
| EV/EBITDA | 4.31 |
EPS(TTM)0.61
EY10.55%
EPS(NY)0.69
Fwd EY11.94%
FCF(TTM)0.9
FCFY15.65%
OCF(TTM)1.32
OCFY22.77%
SpS10.27
BVpS5.84
TBVpS0.71
PEG (NY)2.61
PEG (5Y)7.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.36% | ||
| ROE | 12.28% | ||
| ROCE | 13.66% | ||
| ROIC | 10.66% | ||
| ROICexc | 11.83% | ||
| ROICexgc | 27.01% | ||
| OM | 13.48% | ||
| PM (TTM) | 6.99% | ||
| GM | 64.22% | ||
| FCFM | 8.81% |
ROA(3y)3.32%
ROA(5y)2.47%
ROE(3y)8.23%
ROE(5y)6.31%
ROIC(3y)6.34%
ROIC(5y)5.02%
ROICexc(3y)7.45%
ROICexc(5y)5.98%
ROICexgc(3y)18.21%
ROICexgc(5y)15.26%
ROCE(3y)8.22%
ROCE(5y)6.5%
ROICexcg growth 3Y6.83%
ROICexcg growth 5Y-0.05%
ROICexc growth 3Y13.56%
ROICexc growth 5Y3.32%
OM growth 3Y6.63%
OM growth 5Y-1.41%
PM growth 3Y6.75%
PM growth 5Y-3.44%
GM growth 3Y15.15%
GM growth 5Y5.65%
F-Score6
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 4.23 | ||
| Debt/EBITDA | 1.41 | ||
| Cap/Depr | 70.84% | ||
| Cap/Sales | 4.01% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 66.98% | ||
| Profit Quality | 126.07% | ||
| Current Ratio | 1.23 | ||
| Quick Ratio | 0.77 | ||
| Altman-Z | 2.15 |
F-Score6
WACC6.49%
ROIC/WACC1.64
Cap/Depr(3y)65.74%
Cap/Depr(5y)60.49%
Cap/Sales(3y)5.68%
Cap/Sales(5y)5.68%
Profit Quality(3y)193.7%
Profit Quality(5y)400.33%
High Growth Momentum
Growth
EPS 1Y (TTM)7.02%
EPS 3Y9.65%
EPS 5Y1.33%
EPS Q2Q%25%
EPS Next Y3.63%
EPS Next 2Y9.11%
EPS Next 3Y9.36%
EPS Next 5YN/A
Revenue 1Y (TTM)1.99%
Revenue growth 3Y8.31%
Revenue growth 5Y4.94%
Sales Q2Q%3.72%
Revenue Next Year2.35%
Revenue Next 2Y2.88%
Revenue Next 3Y3.13%
Revenue Next 5Y2.11%
EBIT growth 1Y7.11%
EBIT growth 3Y15.49%
EBIT growth 5Y3.46%
EBIT Next Year54.41%
EBIT Next 3Y18.84%
EBIT Next 5Y10.63%
FCF growth 1Y12.96%
FCF growth 3Y12.02%
FCF growth 5Y7.38%
OCF growth 1Y12.62%
OCF growth 3Y12.04%
OCF growth 5Y4.79%